By Patrick Clark 10/25/12 6:05pm

White Collar

Mr. Gupta. (World Economic Forum/Michael Wuertenberg)

One Day After Gupta Gets Two Years, Expert Consultant Cops Year-long Bid for Insider Trading

One day after corporate chieftain Rajat Gupta was sentenced to two years in prison after his conviction on insider trading charges, a different judge sentenced a former AT&T employee who pleaded guilty to sharing privileged information with investors to one year’s jail time.

Alnoor Ebrahim, who pleaded guilty in June to sharing sales information for AT&T handset devices, including the iPhone and Blackberry. Mr. Ebrahim, who was sentenced by Judge Paul J. Oetken, was paid more than $180,000 for his work with expert network Primary Global Research, which consisted of hundreds of calls with the firm’s clients. Read More

By Patrick Clark 10/24/12 5:13pm

White Collar

World Economic Forum/Michael Wuertenberg

Former McKinsey & Co. CEO Rajat Gupta Gets Two Years Prison Time for Insider Trading

Rajat Gupta, the former chief executive officer of McKinsey & Co., was sentenced to two years imprisonment for insider trading this afternoon during a hearing presided over by Judge Jed Rakoff at the U.S. Southern District courthouse.

Mr. Gupta, who was convicted in May of using his position on the board of directors at Goldman Sachs to pass privileged information to Galleon Group hedge fund manager Raj Rajaratnam, has sought probation in lieu of imprisonment. The government recommended a jail term of eight to 10 years.

“With today’s sentence, Rajat Gupta now must face the grave consequences of his crime,” said U.S. Attorney Preet Bharara in an emailed statement. “His conduct has forever tarnished a once-sterling reputation that took years to cultivate. We hope that others who might consider breaking the securities laws will take heed from this sad occasion and choose not to follow in Mr. Gupta’s footsteps.” Read More

By Kim Velsey 4/24/12 6:21pm

Manhattan Transfers

7 Photos

A house of movie stars and scandal

Breakfast at Tiffany’s House, Where Martha Stewart’s Co-Defendant Once Lived, Sells For $6 M.

The elegant townhouse at 169 East 71st Street has played a role in two great dramas—starring first as the facade of Holly Golightly’s apartment in Breakfast at Tiffany’s, and decades later acting as the hideout of owner Peter E. Bacanovic, the disgraced Merrill Lynch broker who spent five months in prison as part of the Martha Stewart insider trading scandal.

And who knows what lies in store next for the gracious old beauty, bought for $5.97 million, a smidge over the $5.85 million ask? The buyer was mysterious Cyprus-based Costalea Holdings Limited. Is more glamor and intrigue even possible? Read More

By Foster Kamer 2/17/12 6:21pm

FINANCIAL CRIMINAL OF THE DAY

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How to Get Arrested for Insider Trading, in Two Easy Steps

A tech analyst named John Kinnucan was arrested today, accused of insider trading on tech companies that resulted in $110 Million in illegal, insider trader-y gains. Maybe as important as his crime is the example he sets for future generations of those whose lifelong dream it is to get your door busted down by the F.B.I., arrested for insider trading, and consequently extradited to New York for trial.

Mr. Knnucan’s experiences set a handy, simple, two-step example for those seeking to tread the same path he’s taken: Read More

By Foster Kamer 1/13/12 5:10pm

Fancy New Jobs

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Raj Rajaratnam’s Star Prosecutor, Jonathan Streeter: Fence-Jumping Sellout!

Disgraced Galleon Group chief Raj Rajaratnam—better known to the world as “Big Raj” or simply “Raj Raj”—was sent to the slammer for 11 years after being busted for insider trading last year, in what was 2011′s most high-profile financial crime trial. Now one of the guys who helped send him there is moving to greener pastures. “Greener,” as in, he’ll be making exponentially more cash likely defending the guys he used to send to the pen. This is how the world works! Read More

By Foster Kamer 10/13/11 11:38am

Hard Time

Raj Raj Galleon Group

Big Raj and Bernie, Friends Forever: Rajaratnam Receives Record Prison Sentence for Insider Trading, Reportedly Sent to Madoff’s Pen

Raj Rajaratnam is likely in the market for some new “inside” tips about now: how he’s going to survive eleven years in prison, the sentence for the $64M worth of insider trading he was recently found guilty for that was handed down today. UPDATED: It’s being suggested that Raj is going to the same prison as Bernie Madoff, The Federal Correctional Complex in Butner, N.C. Read More